apparel | News & Insights

Ludhiana Garment Makers Explore Investment Opportunities in Jammu and Kashmir with Government Incentives

Published: January 4, 2023
Author: TEXTILE VALUE CHAIN

Few garment makers in Ludhiana are looking into investment potential in Jammu and Kashmir, UT, as a delegation of manufacturers will shortly meet with the governor in this regard.

The incentives offered by the Centre and UT to the garment producers include a 30% state capital investment subsidy, up to a 5% interest subsidy on working capital, GST reimbursement, and a freight refund programme.

By utilising these advantages, production costs will be considerably lower than they would be in Ludhiana. Due to its proximity to Punjab, J&K is a prime location for investments. 

“Our cost of production would be much lower as compared to our units in Punjab, even if we are just able to take advantage of three or four of these incentives after establishing new garment units there. Additionally, since Punjab’s general status is not excellent right now, every industrial sector is looking to expand in neighbouring states. J&K is our best option in this situation,” according to Harish Dua, President of the Knitwear and Apparel Exporters Organization in Ludhiana.

The Punjab government’s support in the form of fiscal incentives, according to apparel manufacturers, is virtually non-existent. As a result, all factory owners looking to expand their operations are considering establishing new facilities in other states due to the substantial incentives offered by those governments.

Although other apparel producers are concerned about this because J&K now lacks the right ecology for the creation of clothing, which will be a huge bottleneck for the businesses.

Though nothing substantial occurred, a similar endeavour to invest outside of Punjab was also envisaged. A few years ago, a group of clothing makers from Ludhiana tried to invest in Bihar and even met with Bihar officials, but ultimately nothing happened.

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